The effects of retail channel integration through the use of information technologies on firm performance
The ability of information technologies (ITs) to integrate activities and offerings across multiple channels offers a promising opportunity for retail firms to enhance their relationship with their customers and firm performance. Consumers value the flexibility to learn about the available offerings...
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| Published in: | Journal of operations management Vol. 30; no. 5; pp. 368 - 381 |
|---|---|
| Main Authors: | , , |
| Format: | Journal Article |
| Language: | English |
| Published: |
Chicago
Elsevier B.V
01-07-2012
Wiley Subscription Services, Inc |
| Subjects: | |
| Online Access: | Get full text |
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| Abstract | The ability of information technologies (ITs) to integrate activities and offerings across multiple channels offers a promising opportunity for retail firms to enhance their relationship with their customers and firm performance. Consumers value the flexibility to learn about the available offerings, complete their orders and obtain customer service across different channels in a convenient and integrated manner. Therefore, the retail industry has begun to use IT extensively to automate and integrate business processes across their traditional and online channels. This study examines the impacts of the use of IT by retail firms in integrating channel activities for selling to customers. Our research model argues that retail channel integration through IT should enhance the efficiency and innovation of a retail firm. In turn, these improvements should enhance their overall performance. We also propose that the environmental dynamism would moderate the effects of improvements in efficiency and innovation on firm performance. We draw upon recent theories in organizational resource integration and organizational learning to develop our research model and hypotheses. Based on survey data from 125 multichannel retailers in Singapore, we find that retail channel integration through the use of IT allows firms to not only be efficient in delivering the current offerings, but also be innovative in creating future offerings. Further, we find that environmental dynamism does positively moderate the effects of innovation ability on performance. Our results provide managerial insights for firms involved in digital integration not only in the retail sector but also in other service industries. These findings could also serve as a foundation for further research on service operations management for firms with both physical and online operations. |
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| AbstractList | This study examines the impacts of the use of information technology (IT) by retail firms in integrating channel activities for selling to customers. The research model argues that retail channel integration through IT should enhance the efficiency and innovation of a retail firm. In turn, these improvements should enhance their overall performance. This paper also proposes that the environmental dynamism would moderate the effects of improvements in efficiency and innovation on firm performance. It draws upon recent theories in organizational resource integration and organizational learning to develop the research model and hypotheses. The results provide managerial insights for firms involved in digital integration not only in the retail sector but also in other service industries. These findings could also serve as a foundation for further research on service operations management for firms with both physical and online operations. The ability of information technologies (ITs) to integrate activities and offerings across multiple channels offers a promising opportunity for retail firms to enhance their relationship with their customers and firm performance. Consumers value the flexibility to learn about the available offerings, complete their orders and obtain customer service across different channels in a convenient and integrated manner. Therefore, the retail industry has begun to use IT extensively to automate and integrate business processes across their traditional and online channels. This study examines the impacts of the use of IT by retail firms in integrating channel activities for selling to customers. Our research model argues that retail channel integration through IT should enhance the efficiency and innovation of a retail firm. In turn, these improvements should enhance their overall performance. We also propose that the environmental dynamism would moderate the effects of improvements in efficiency and innovation on firm performance. We draw upon recent theories in organizational resource integration and organizational learning to develop our research model and hypotheses. Based on survey data from 125 multichannel retailers in Singapore, we find that retail channel integration through the use of IT allows firms to not only be efficient in delivering the current offerings, but also be innovative in creating future offerings. Further, we find that environmental dynamism does positively moderate the effects of innovation ability on performance. Our results provide managerial insights for firms involved in digital integration not only in the retail sector but also in other service industries. These findings could also serve as a foundation for further research on service operations management for firms with both physical and online operations. |
| Author | Teo, Hock-Hai Sambamurthy, Vallabh Oh, Lih-Bin |
| Author_xml | – sequence: 1 givenname: Lih-Bin surname: Oh fullname: Oh, Lih-Bin email: ohlb@mail.xjtu.edu.cn organization: School of Management, Xi’an Jiaotong University, Xi’an, Shaanxi 710049, China – sequence: 2 givenname: Hock-Hai surname: Teo fullname: Teo, Hock-Hai email: teohh@comp.nus.edu.sg organization: School of Computing, National University of Singapore, Singapore 117543, Singapore – sequence: 3 givenname: Vallabh surname: Sambamurthy fullname: Sambamurthy, Vallabh email: smurthy@bus.msu.edu organization: Eli Broad College of Business, Michigan State University, East Lansing, MI 48824, USA |
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| Keywords | Service operations management Retail channel integration Service delivery system Service science Multichannel retailing Resource complementarities |
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| Snippet | The ability of information technologies (ITs) to integrate activities and offerings across multiple channels offers a promising opportunity for retail firms to... This study examines the impacts of the use of information technology (IT) by retail firms in integrating channel activities for selling to customers. The... |
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| SubjectTerms | Automation Channels Customers Financial performance Information systems Information technology Multichannel retailing On-line systems Online Operations management Operations research Resource complementarities Retail channel integration Retailing industry Service delivery system Service operations management Service science Studies Technology adoption |
| Title | The effects of retail channel integration through the use of information technologies on firm performance |
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